Commonwealth Bank of Australia unit Colonial First State Investments Ltd. is facing a class-action suit in relation to alleged breaches of super trustee duties.
Maurice Blackburn Lawyers on Oct. 17 filed a class action against Colonial First State Investments, as well as a former executive director at the company, Linda Elkins.
The class action alleges that there were breaches of superannuation law in Colonial First State Investments' slow implementation of the MySuper reforms for members of the FirstChoice Employer Super division. Maurice Blackburn alleges that Colonial First State Investments failed to exercise to the degree of care, skill and diligence required of a superannuation trustee and it did not perform its duties in the best interest of beneficiaries.
The case will center on Colonial First State Investments' failure to transition A$3.2 billion of accrued default amounts over the to the lower-cost, higher-performing MySuper product in a timely way, said Miranda Nagy, principal lawyer at Maurice Blackburn.
Commonwealth Bank of Australia acknowledged the class action proceedings filed by Maurice Blackburn and said that it will review the claim.